TacticScaleWhat Autozone Does & How It Makes Money (AZO)
Updated October 2026 · reflects Autozone's latest reported financials
U.S.-based retailer and distributor of auto replacement parts and accessories. It makes money mainly by selling auto parts, maintenance items and accessories to retail customers and commercial repair shops through its stores and websites, including its own Duralast brand.
How Autozone makes money
It makes money mainly by selling auto parts, maintenance items and accessories to retail customers and commercial repair shops through its stores and websites, including its own Duralast brand. It also sells ALLDATA diagnostic, repair and shop-management software to automotive professionals.
What Autozone does
AutoZone, Inc., founded in 1979 and headquartered in Memphis, Tennessee, retails and distributes automotive replacement parts and accessories in the United States, Mexico and Brazil. Its range covers cars, SUVs, vans and light-duty trucks. It sells new and remanufactured hard parts such as starters, alternators, radiators, fuel pumps and brakes, along with maintenance items like oil, filters, fluids and wipers, plus accessories and non-automotive goods such as cleaners, tools, floor mats and snacks. Beyond its do-it-yourself retail customers, AutoZone runs a commercial sales program that gives repair shops credit and parts delivery. It sells its own Duralast brand through duralastparts.com and offers online shopping at autozone.com. Through ALLDATA, it also provides diagnostic, repair, collision and shop-management software to automotive professionals.
Products & services
- Duralast branded parts
- ALLDATA repair and shop management software
- Batteries, brakes, starters and alternators
- Oil, filters and maintenance fluids
- Commercial credit and parts delivery program
- autozone.com online store
What is Autozone worth?
On an owner-earnings DCF, Autozone's most-likely value is about $1,627 versus a recent price near $2,940 (45% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$841) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 7.6× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Advance Auto Parts (AAP) · Dorman Products (DORM) · O'Reilly Automotive (ORLY) · AutoNation (AN) · LKQ (LKQ)